Share of electronics and gadgets bought via e-commerce platforms projected to grow by 7.9% in 2024, partly driven by BNPL adoption – UnaCash

UnaCash, an in-app and in-store financial solutions provider, expects the share of electronics and gadgets bought by e-commerce to grow by 7.9% to ₱397.7 billion this year, partly fueled by growth in the adoption of ‘buy now, pay later’ (BNPL) services.

This is followed by the food and beverage sector at ₱114.1 billion (11%), appliances at ₱100 billion (10%), and fashion and beauty at ₱93.5 billion (8.5%).

The success of the electronics and gadgets segment in e-commerce highlights the mutually beneficial relationship between buy now, pay later (BNPL) services and e-commerce. There is an increase of customer base, comprising 12% Filipino internet users who use BNPL for shopping online weekly, a reflection of the growing popularity of this financial service in the local market.

The leading products purchased online by Filipinos were dominated by the following: fashion (65%), beauty and personal care (47%), and food and beverage (35%). Consumer interest aligned with the demographic between 25-34 (32.8%) which is the largest user group of e-commerce platforms. While these categories have high consumer engagement, the market share differs, with electronics, gadgets and physical media leading at 45%, followed by food and personal hygiene (25%), furniture and appliances (16%), and fashion (10%).

Essential categories align with popular BNPL purchases. As of February 2024, UnaCash data indicates that 70.17% of purchases made in the platform are for electronics and gadgets, aligned with a survey that showed that 61% of respondents used BNPL for buying electronics and gadgets, followed by 55% for fashion and accessories. This matches with the key online shopping categories, displaying the natural synergy between BNPL and e-commerce.

“The development of BNPL in the Philippines will be closely tied to e-commerce,” explained Erwin Ocampo, head of product of UnaCash. “Online purchases on electronics, gadgets, furniture and home appliances, reflects the dynamic nature of the online retail sector, making 2024 seem like a fruitful time for solution providers like UnaCash.”

Further development of BNPL in the Philippines will be closely tied to e-commerce of electronics and gadgets, food, and fashion and beauty products, which reflects the evolving consumer preferences.

To know more about UnaCash, you may download the application through this link: https://unacashbnpl.onelink.me/nlxR/jsqv07vo